Published On: Sat, Sep 7th, 2019

Arctic LNG 2 Project in Russia moves ahead with final investment approval

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Arctic LNG 2 Project : Novatek, and the other participants have approved the final investment decision (FID) for a (LNG) development on the in the Russian Arctic region, as per the latest Russian oil and industry news.

Arctic LNG 2 Project capacity

The project Arctic LNG 2 with a production capacity of 19.8 million tons per annum involves the development of the Utrenneye field and the construction of a natural gas liquefaction facility. As of 31 December 2018, the 2P reserves under PRMS of the Utrenneye field totaled 1,138 billion cubic meters of natural gas and 57 million tons of liquids, according to Novatek.

The LNG plant will include three liquefaction trains with a capacity of 6.6 million tons per annum each. The Arctic LNG 2 trains will be installed using gravity-based structure (GBS) platforms.

The launch of the first Arctic LNG 2 train is scheduled for 2023 while the second and third train are to start up by 2024 and 2026, respectively.

Related story : TechnipFMC wins $7.6bn Arctic LNG 2 project contract

Commenting on the Arctic LNG 2 Project FID, Leonid Mikhelson – chairman of the Management Board, Novatek said: “Today, we have taken another step forward in our goal to become one of the largest LNG producers in the world by approving the final investment decision on our second large-scale LNG project – Arctic LNG 2.

“Our long-term strategy is to develop our vast low-cost hydrocarbon on the Yamal and Gydan peninsulas, as well as to maximize our cost competitiveness across LNG markets”.

Arctic LNG 2 project in Russia FID

Novatek and partners take FID on the Arctic LNG 2 project in Russia. Image by Free-Photos from Pixabay.

Arctic LNG 2 partners include Novatek (60%), Total (10%), CNPC (10%), CNOOC (10%) and Mitsui- consortium Japan Arctic LNG (10%).

Patrick Pouyanné – chairman and CEO, Total, commenting on the Arctic LNG 2 Project FID,  said: “Arctic LNG 2 will leverage the success of the Yamal LNG project and will deliver competitive LNG to the markets in four years’ time.

“Arctic LNG 2 adds to our growing portfolio of competitive LNG developments based on giant low cost resources primarily intended for the fast growing Asian markets.”

The LNG from Arctic LNG 2 production will be delivered to global markets using a fleet of ice-class LNG carriers.

For more Russian oil and gas industry news and Arctic LNG 2 Project updates, keep following Business News Today.

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